The Delilah Lounge and the midnight reset. BEWARE!

I got a Pet Hunger Hack item, which makes your pet not lose any energy for 12 hours. Just before going to bed, I parked my character at the Delilah Lounge, summoned my new Derpy pet, activated the Hack, and went to sleep.

I awoke the next morning only to find out my character was back outside again, and Derpy had only gained one level, with the Hack only lasting one more hour.

What happened? Why was my character outside again? Did I just lose the bonus of the Hack item because my character got thrown out of the Delilah Lounge because she was still inside when the timer hit 12 PM?

Seriously, is there a reasonable explanation for this waste of an item? Is there indeed a reset for the lounge at midnight? And so, why does that need to happen?

Happened here, too. Though no hunger hack involved here. Left my character dancing when I fell asleep and woke up to find myself outside. I scrolled back up to see if there was a system message about it and all I have is: